You may have wondered what to expect during tax season based on your experience or the ease with which you prepared for this year’s taxes. As with any other seasonal occurrence, we all need to be prepared for it and look into some things we might need to deal with it as smoothly as possible. Fortunately, you can do something to make it easier and less stressful: get organised. Here are some things that will help you manage your taxes this year, so even if you don’t have a CPA’s services, you can still get everything done right.
Tax season is a busy time for both the government and taxpayers. The IRS has many demands on its resources during this time of year, including helping millions of people file their taxes.
However, it’s important to remember that taxpayers have rights when paying taxes. Taxpayers can dispute their tax liability or even appeal a tax debt through the IRS if they believe they should not owe money.
Appealing a tax debt begins with filing an Internal Revenue Service (IRS) Form 1040X, the electronic version of Form 1040. The form must be filed electronically through the IRS’ e-file system or by calling and following the prompts on the automated phone line.
Should you accept an auto-assessment?
If you are self-employed and have not been able to file a tax return, then you may be eligible for an automatic tax refund. The IRS will automatically process any taxes owed on your behalf. The process is called an “auto-assessment” and can result in a tax refund as soon as 30 days after the end of the year.
However, this doesn’t mean that you don’t need to do anything or that it won’t take time to get your money back. You will have to wait for the IRS to send out a notice about your refund. This could take several weeks and even months, depending on how many refunds are issued on the same day or day after.
The good news is that most people who receive an auto-assessment can claim their refund within a month of filing their return because they had low-income last year or received other tax breaks such as the Earned Income Tax Credit (EITC).
No Need to Delay if you Owe Tax
If you owe tax, you should file your return by the April 17 due date every year. If you are due a refund, it will be issued within two weeks of filing. In most cases, people won’t have to wait for much longer than that to get their refund.
If you receive a refund, keeping track of that money is essential because the IRS can reclaim it if you don’t file your taxes for three years. It’s also important to report that money as taxable income on your next tax return.
Hopefully, this post has helped you understand what to expect from the IRS and your state during tax season. And with that in mind, you should be prepared to deal with whatever you encounter. If you can plan, it should make everything go more smoothly. Ultimately, a tax refund is the blessing that keeps on giving. Use yours to pay down debt, or better yet, to start investing and growing your wealth today.